The Magician’s Memorial - Chapter 297



Only Noblemtl

297. Rocket (1)

There are only a few days left to return to Korea.

Since there was still work to be done before that, I visited Amazon headquarters with President Han early in the morning.

“President Han, aren’t you curious why I suddenly asked you to go to Amazon headquarters?”

“Isn’t this to check the automated equipment?”

“That’s just an additional purpose. I’m thinking about creating a distribution company similar to Amazon in Korea through collaboration with Amazon.”

“Are you going into the distribution business? The Korean distribution market is already dominated by several large companies. It is not easy to squeeze in between them.”

A CEO spoke about the market situation.

As he said, the Korean distribution market was solidified, and the Internet commerce market was almost monopolized by a few companies.

“In business, what is easy and what is difficult? The only difference is whether you have a lot of money or not.”

“It is worth investing a lot of initial capital if you can become the winner of the game of chicken, but is there any reason to take such a risk?”

“There are complex reasons. It is necessary for the shipping companies that will take over in just 5 years, and it is also necessary for the distribution of automation facilities and electric vehicles.”

“Speaking of distributing electric vehicles, do you plan to carry out delivery on your own instead of using a courier company?”

Most distribution companies used courier companies.

Although there were some companies that had delivery services, it was rare for new distribution companies to operate delivery services.

“All delivery vehicles will be supported by the company. They will also be electric vehicles, and we plan to hire and manage all delivery staff as full-time employees.”

“That would require a huge amount of initial capital.”

“That’s why we came to Amazon. Not only will we collaborate with Amazon on technology, but we will also share shares. This will ease the burden of the initial investment.”

“Isn’t it the same that the money comes out of the chairman’s pocket anyway?”

I owned about half of Amazon’s shares.

One of the few people who knew about this was President Han.

Not only had we worked together since the SAVE Investment Company days, but we had also worked together with Jeffrey, the CEO of Amazon, so it was impossible not to know him.

“On the surface, it is enough to look like you are managing risks. There will probably be a deficit for about 10 years. At the longest, it could be close to 20 years, but after that period, you will be able to fully recover your investment.”

“It appears that we will be able to turn a profit only if we achieve first place in the Korean distribution market share.”

“Then we can take first place. Let’s go now. Jeffrey will be waiting for you a long time.”

After consoling President Han, I entered the Amazon headquarters where Jeffrey was waiting.

He was waiting for us in the lobby and guided us directly to the reception room.

“Congratulations! I heard you won GM this time.”

“I don’t know if it’s something to celebrate. I think it’s going to be quite busy due to the acquisition of GM.”

“If only the Chairman asks, Amazon can provide investment funds. Just tell me at any time.”

“Then, please provide investment funds to someone other than GM. This time, we are planning to start an internet commerce service like Amazon in Korea.”

Jeffrey stroked his forehead.

It seemed like he couldn’t tell whether I was joking or being serious.

“Are you saying that you are going to start a service like Amazon in Korea? Is there really a need for that? Can’t Amazon just enter Korea? Wouldn’t it be okay to just leave the Amazon Korean service entirely to the Taewo Group?”

“We are planning to start a service that is similar to Amazon but slightly different. The United States has a very large territory, so distribution requires a lot of manpower and time, but Korea is a country with a small territory, so we need services tailored to that.”

“What service are you talking about specifically?”

“Next-day delivery or same-day delivery. When a consumer orders a product online, we plan to start a service that delivers the product that evening or the next morning.”

Geoffrey waved his hand.

It was an indication that the plan I had mentioned was impossible.

“It’s not like we’re delivering on some kind of rocket, and same-day delivery or next-morning delivery is impossible.”

“It may not be possible in the United States, but it is possible in Korea. Half of the population lives in the metropolitan area, and the rest of the population is concentrated in the five major metropolitan cities, so it is a fully possible service.”

There was no need to discuss it theoretically.

Because I have personally experienced that same-day or next-day delivery is possible.

Nowadays, when I order a delivery, it usually takes 3 days, but before I returned, I was used to receiving the goods the next day.

“The Chairman said it is possible, so it must be possible. So, how much support can we give? The Chairman has requested support, so how can we remain silent? We will support you as much as you want.”

“About $2 billion would be enough. I’ll give you 20% of the shares.”

“You really call for as much as you want. Amazon’s situation is not good enough to support $2 billion at once. Can we support $2 billion in installments over five years?”

“That’s enough. You can spread the support over 10 years instead of 5. In any case, to turn a profit, you have to play a game of chicken for nearly 20 years.”

$2 billion was more than 2 trillion won.

It was a considerable amount from Amazon’s perspective, and it was especially burdensome as its cash was drying up due to the Lehman crisis.

“You are planning to have a complete monopoly. But wouldn’t you be short of money to play a game of chicken? I would like to support you with $2 billion at once, but I am sorry that I cannot do so.”

“Don’t worry. Fintech banks will also participate in the war. If Taew Group, Amazon, and Fintech banks form an alliance, wouldn’t it be easy to monopolize the Korean distribution market?”

“Are fintech banks also joining the war? Korean consumers will be happy and their competitors will just die.”

In Korea, an internet commerce market called social commerce was forming.

However, in the end, the social commerce market was a market that did not produce a return on investment.

Therefore, in order to make a profit, you had to drive out all competitors and establish a monopoly to see a surplus.

“It will be a lot of fun to watch. It will be very grand from the start. And we will build warehouses in several locations using 120% of Amazon’s automated facility system.”

“You can use as many automation equipment systems as you want. If it weren’t for the Chairman, wouldn’t they have existed anyway? If necessary, we will even send automation equipment-related personnel to Korea.”

Before the regression, the social commerce market suffered losses for nearly 20 years.

However, if they could quickly build a monopoly wall with Amazon on their backs, they could turn a profit more quickly.

“Manpower is gratefully received. And from Amazon’s perspective, it is not a bad thing at all. Once same-day delivery becomes established in Korea, that service will be able to be applied to the United States as well.”

“If that happens, we will take the know-how and apply it to the United States. Although this will be possible only if we increase the logistics warehouse by more than double the current size.”

“Buy good real estate now. Real estate prices have hit rock bottom due to the Lehman crisis.”

The U.S. real estate market was a bonanza right now.

Now that we have reached the lowest point, all that remains is to go up, and if we buy land now, we can double our business within a few years.

“Is that okay? I was worried that it would fall further, so I was holding back, but since the Chairman said so, I will have to purchase the warehouse site now.”

“If you are short of money, tell a fintech bank. They will loan you as much as you want at a low interest rate.”

“Are you saying that we should invest cash in Korea and purchase real estate with a loan?”

“What I said was a bit like robbery. Still, you should not withdraw your investment.”

“The chairman owns more than half of the shares, so what should I do? If the chairman tells me to invest, I should invest. If he tells me to take out a loan and buy real estate, I should buy it. Hahaha!”

Jeffrey said with a big smile.

At first glance, you might think that there is a bone in the words, but between us, there was no need to look into what was contained in the words.

“I will establish a corporation soon and contact you.”

“I will be fully prepared and waiting for you. By the way, have you decided on a name for the company you will start in Korea? You can use the name Amazon if necessary.”

“Thank you, but we have already decided on a name for the company: ‘Rocket.’”

“I guess it means delivery as fast as a rocket. That sounds like a good name.”

Collaboration with Amazon was completed smoothly.

Now all I had to do was take care of the last remaining matters and I could return to Korea.

* * *

next day.

I enjoyed lunch with David at a steakhouse with a Western feel.

“This is the place that cooks the most delicious steaks in the area. How do you match the taste of the boss?”

“It’s quite good. It’s definitely different from Korean beef.”

“Korean barbecue, which involves grilling thinly sliced ​​beef, is delicious, but it’s a different taste from steak.”

A steak weighing over 1KG was quickly emptied.

Only after enjoying a glass of wine with my mouth full did I get to the point with David.

“There is one thing that needs to be resolved by moving the political circles in the United States and Europe.”

“Is it okay if I lobby for the first time in a while? Whatever you ask me to do, I will complete it neatly.”

David awaits orders with bright eyes.

At times like this, David looked like a well-trained hunting dog.

“Could you help us receive subsidies for electric vehicles?”

“There is a lot of interest in the environment these days in Europe and the United States. Moreover, since the Democratic Party is currently in power in the United States, it will not be difficult to accept it if we just scrape a little.”

“In addition, I would like to receive benefits related to electric vehicle charging stations. It would be even better if there is a bill to make electric vehicle charging stations mandatory in public parking lots and apartments.”

Preliminary work was needed to commercialize electric vehicles.

For that to happen, the political circles of the United States and Europe had to move.

“I don’t know what the political world will think because proper electric vehicles haven’t been released yet.”

“Don’t worry about that. A proper electric car will be released in the second half of next year at the latest.”

“First, I will try to lobby the political world. However, if the commercialization of electric vehicles is delayed, the bill will inevitably be made late.”

No matter how good of a lobbyist David is.

It was difficult to enact legislation mandating charging stations for electric vehicles that had not yet been commercialized.

“First, resolve the issue of electric vehicle subsidies, and you can proceed slowly with the charging station issue.”

“It will take quite a long time. My liver will be soaked with alcohol for the first time in a long time. I saved my liver well for today.”

“Trust me, I’m going back to Korea.”

“I feel strangely sad to hear that the Chairman is returning to Korea. I will see you off at the airport.”

We left the steakhouse.

Captain Kang and 20 of his employees were waiting for us outside, and 10 cars were moving to the airport at the same time.

Today, my long business trip to the United States comes to an end.